Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.

So if I do a good analysis of the property (including all the costs) and the property generates monthly CF with a DSCR above 1.1, I would be removing a big risk because the numbers add up.

Hre are the key things to knowWhat you are bidding on - often oddball properties that are hard to identify and have little value are auctioned offThe true as is value of the property, The tax assessment can be way higher or way lower than the true as is valueThe local laws and how they affet your total costs and returns

Even with renovation costs and insurance costs the fix n flips are still making money.  

It cost about $100K, but it would have cost around $200K if she were to do it from scratch.

But if borrowing costs remain high and interest rates don't fall as many people expect, cap rates will have to decompress further. 

It may make less cash flow/ per month but in may cases in the long run after PM fees and Repair costs, many times it turns out similar.   

Agents are also advising you to look for expensive mistakes (like checking the sewer which could cost 5-40k) and using their network and contacts to find homes off market or FSBO.  

Many investors in your situation also explore seller financing or subject-to deals to minimize upfront costs, especially if they find a seller open to creative terms. 

Also, managing the property as a rental could offer tax benefits.When purchasing, keep in mind condo association fees and maintenance costs.